The OFW’s Guide to Getting a PAG-IBIG Housing Loan


Like all OFWs, you are working abroad so you can create a better life for yourself and your families–ideally, it should also be a life that is sustainable. “Put your money into investments that will either create income or increase in value,” says financial adviser Randy Yang. One such investment is property–a home you can live in, or a condo unit you can rent out.

“But how can I afford a home?” you ask. You can use the Pag-IBIG loan.

Am I eligible for a Pag-IBIG loan?

homefinalmasterpage2_06OFWs can get financing from Pag-IBIG Home Development Mutual Fund (HDMF). This government agency actually created an affordable housing loan scheme for OFW members. You become eligible once you’ve made Pag-IBIG contributions for 24 months, and are currently employed.

Like all lending institutions, Pag-IBIG needs to do a background credit check to see if you have any previous “bad loans” with other creditors (ex: credit card institutions, banks).

You will also need to show proof of employment. You need a valid employment contract or Employer’s Certification, which has an OWWA/POEA stamp. If it’s in a foreign language, you need to submit the original (validated by a Pag-IBIG Fund information officer in the country you work in) but include a certified English translation.

How much money can I borrow?

A Pag-IBIG member can borrow a maximum of P6,000,000, but the actual amount you can borrow is based on your need and your capacity to pay (Pag-IBIG determines both by looking at the documents you submit, including employment contracts.) For example, your monthly payments shouldn’t exceed 30% of your actual income, and even if you stretch the payment terms, you should be younger than retirement age (or 65 years old) by the time you’ve completed the amortizations.

A Pag-IBIG member can borrow a maximum of P6,000,000, but the actual amount you can borrow is based on your need and your capacity to pay.

What can I use my PAG-IBIG housing loan for?

You can use your loan to buy a fully developed lot within a residential area, a condominium unit and its parking slot, or a lot or unit that requires further construction. The property can be brand new, previously mortgaged with HDMF, or is being sold (either in its full price or under a rent-to-own program).

You can also use the Pag-IBIG loan to refinance an existing loan or improve a unit.

How do I apply for a PAG-IBIG housing loan?

You need to go to the Pag-IBIG office, where you’ll attend loan counseling with a Pag-IBIG information officer. You’ll then be asked to fill up forms: a Preliminary Loan Counseling Questionnaire (PLCQ) and a Housing Loan Application (HLA). If you are over 60 years old or are applying for a loan over P2,000,000, you’ll then be asked to fill up a medical questionnaire.

During that visit, ask for a copy of your Membership Status Verification Slip (MSVS).

You’ll be given a list of required documents. On your return visit, you will submit the requirements and pay a non-refundable processing fee of P1,000. Pag-IBIG usually takes 20 working days to do the necessary credit investigation and property valuation. You will find out then if the loan has been approved.

You need to go to the Pag-IBIG office, where you’ll attend loan counseling with a Pag-IBIG information officer.

What kind of documents do I need to gather?

The Pag-IBIG application forms

  • Housing Loan Application (HLA) Form
  • Certificate of Attendance of Seminar
  • Membership Status Verification Slip (MSVS)
  • Preliminary Loan Counseling Questionnaire (PLCQ)
  • Membership Data Form (MDF)

Your borrower’s documents

  • Latest Community Tax Certification (cedula)
  • 1×1 picture of borrower and spouse (if married)
  • Marriage Contract, if you are married
  • Certificate of No Marriage (CENOMAR), if you are single
  • Legal Separation, if separated
  • Photocopy of valid IDs (e.g. TIN, SSS, Postal ID, Driver’s License, Passport, PRC, etc.)

If someone will be acting as your Attorney-in-Fact while you are abroad, you need to bring:

  • Latest Community Tax Certification (cedula)
  • Proof of Relationship from the Borrower (e.g. Marriage Contract, Birth Certificate)
  • Photocopy of valid IDs (e.g. TIN, SSS, Postal ID, Driver’s License, Passport, PRC, etc.)

Proof of Income

  • Employment contracts
  • Bank statements

Property documents

  • Certified true copy of Transfer Certificate Title (TCT) of the property by the Registry of Deeds (latest title)
  • Updated Tax Declaration
  • Updated Real Estate Tax Receipt or Tax Clearance
  • Location Plan and Vicinity Map of the property

 Additional requirements for OFWs

  • Notarized Special Power of Attorney (SPA) prior to date of departure or duly certified and authenticated by the Philippine Embassy or Consulate in the country where you work, if abroad. If SPA does not have the red ribbon of Consulate Office, the SPA must have a duly stamped notarial seal.  If you acquired the SPA in the Philippines, it needs to be notarized.
  • Photocopy of passport showing stamp of arrival and departure dates from the Philippines

Documents you will need to present after the loan has been approved

  • Loan Agreement/Loan and Mortgage Agreement
  • Duly notarized Promissory Note
  • Pag-IBIG Fund Receipt (PFR) representing payment of one-year insurance premium

What happens after I get the loan?

You will receive a Notice of Loan Approval (NOA) or Letter of Guaranty (LOG), which can only be released to you or to your attorney-in-fact if you have already left the country.

Within 90 calendar days, you or your attorney-in-fact need to give this document to the property seller and pay the Capital Gains Tax at the Bureau of Internal Revenue (BIR). You will be given a Certificate Authorizing Registration. Present the Deed of Absolute Sale (DOAS), Tax Declaration and Tax Receipt.

Go to the Treasurer’s office of the local government unit (LGU) concerned for payment of transfer tax. Then go to the Registry of Deeds for the transfer of title and present the tax clearance, most recent tax declaration, mortgage contract and the BIR documentary stamps. The Assessor’s Office will give you a tax declaration and the Engineering Office will give you an occupancy permit.

If you are using the Pag-IBIG loan for refinancing, give the Letter of Guarantee (LOG) and Loan and Mortgage Agreement (LMA) to the bank/financing institution, then go to the Registry of Deeds for the transfer of title and mortgage annotation on the land title.

Finally, return to PAG-IBIG to submit the following documents and officially have the loan funds released. (Bring a valid ID to get the check.)

  • Original Transfer Certificate of Title (TCT) in the name of the borrower with mortgage annotation on it;
  • Deed of Absolute Sale (DOAS) with original stamp from the Registry of Deeds;
  • New Tax Declaration in the name of the borrower;
  • Updated Real Estate Tax Receipt for Lot;
  • Updated Real Estate Tax Receipt for House (if applicable);
  • Occupancy Permit from the Engineering office;
  • Assignment of Loan Proceeds (this document will be from Pag-IBIG);

Congratulations!

You are now a homeowner! You have survived the paperwork, now all that’s left is to deposit the monthly payments. (Don’t forget to pay the first amortization on the month immediately following the loan take-out/final loan release.)  For more information on decorating your property or preparing it for rentals, read the Megaworld at the Fort blog.

Looking for a property? One investment that combines quality of life and investment smarts is a Megaworld at the Fort property. Aside from its excellent location (Fort Bonifacio is one of the four best places to buy property in Metro Manila), condo developments like The Florence, The Venice and The Viceroy are easy for OFWs to rent out to yuppies, young families and expats because of the comfort and convenience. For more information visit Megaworld at the Fort.

Looking for a property? One investment that combines quality of life and investment smarts is a Megaworld at the Fort property.

Image credit: http://www.pagibigfund.gov.ph/

Disclaimer: Megaworld is not authorized to process Pag-IBIG loans, however, clients can pay for their condo units using their Pag-IBIG fund.

Author: Megaworld at the Fort

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Megaworld is the country’s leading residential condominium developer and pioneer of the LIVE-WORK-PLAY-LEARN-SHOP township concept.


One comment on “The OFW’s Guide to Getting a PAG-IBIG Housing Loan

  1. roselia c balubar

    i want o know more about pag ibig loan for the ofw.for example i make a loan for the the maximum 6000,000 how long will it takes me to pay i am now 45 years old if in case i will die at the age of 60 how is my loan status will be? im currently working here in Israel.

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